CF@skillnet.com
CF@skillnet.com
CF@skillnet.com
Related News
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Selected Skillnet Clients
Argantis, Cordys, DTMS, Empolis, Eutex, Janosch Film und Medien, Loewe, ProSiebenSat.1, Sal. Oppenheim, SES ASTRA, Trend Network, USUInitial Public Offering (IPO)
As a "Listing Partner of Deutsche Börse AG", Skillnet has so far guided 14 TIMES companies in their IPO preparations. Among these are companies from the software, media, and consumer electronics markets, affiliated companies of Bertelsmann and mobilcom, as well as portfolio companies of international financial investors.
Skillnet offers a comprehensive and personalized service where we advise and coach innovative companies on their journey toward an IPO. First of all, our team assists in determining whether an IPO is the right step in the company’s development.
We support the compilation of business plans, presentations, and documents in order to increase the attractiveness of a company for potential investors/shareholders. As a strategic consultant, Skillnet also assumes the role of a constructive sparring partner. If an IPO isn’t the right step, our Management Consulting group can help identify potential alternatives, including joint venture opportunities, strategic investors, or sale/merger opportunities.
Skillnet specializes in value enhancement in the pre-IPO phase and pursues a solely value-oriented approach based on experience from past IPO support.
1. Pre-IPO Review
The focus of the IPO preparation lies on a profound assessment of the IPO candidate´s internal and external framework. This is the basis for an optimized positioning of the company in its peer group.
The evaluation of the candidate´s position in the market comprises the following steps:
- Value-driven review of the strategic position: Assessment of the business set up (e. g. business model, sales structure) and evaluation of shareholder structure
- Best practice services transfer: Transmission of the best practice learnings on the IPO-candidates product- and services portfolio, aiming at maximising the company value
- Value contribution assessment: Evaluation of the contribution to company value, which is generated by existing co-operations or partnerships
- Customer value analysis: Evaluation of the recoverability and potentials in the customer segment under consideration of internationalisation
- Cost cutting potentials: Identification of potentials for optimization, which may contribute to an enhancement of value
2. Equity Story
The basis for a successful communication with potential investors or banks is provided by a conclusive and profound equity story. In the past, we succeeded in generating significant increases in company value for our customers based on attractive and authentic equity stories.
Our services range from the development of a company vision to the identification of USPs with regard to the peer group:
- Development of company vision and strategy based on the experience from approx. 1,000 TIMES-projects in the area of strategy and the results from the value-driven assessment
- Compilation of core milestones for the company development - external (market position, product portfolio) and internal (enhancement of organisation)
- Presentation of USPs and position in the peer group aimed at maximising company value
3. Fact Book and financial budgeting
The fact book or information memorandum contains the information and results of the preceding tasks, formatted in a marketing-like and appealing way. It serves to comprehensively inform potential investors and banks about the strategic, personal and financial situation of the company. On this basis, the banks, which are invited to the beauty contest, should be able to draw up a first draft of the placement strategy.
The following steps are part of this service:
- Strategic positoning and elaboration on the relevant partial strategies
- Compilation of an integrated business plan
- Consistent and targeted company presentation
- Development of five-year financial budgeting (P&L, balance sheet, cash-flow planning)
- Evaluation of the company
4. Beauty Contest
Skillnet supports the IPO candidate in choosing the appropriate issuing bank and organizes the entire beauty contest during which the banks and issuing houses present their IPO-concepts for the company.
The following steps are relevant in this process:
- Definition of requirements concerning the banks
- Choice of the banks and transmission of information material
- Preparation of management presentation
- Preparation of the management for the beauty contest
- Organisation of the beauty contest
- Evaluation of the banks´ proposals
- Recommendation to the management
5. Management of IPO-Process
Based on our competence in project mananagement from several IPOs and numerous projects, where Skillnet was responsible for controlling the involved third parties, we co-ordinate the assigned banks, legal consultants, accountants and IR-agencies. Thus, we guarantee optimal and efficient co-operation of the involved parties.
The main success factors for an effective IPO are above all the candidate’s positioning and brand recognition in the market, as well as the early involvement of the potential investors in the issuing process. Skillnet’s “value added” approach for IPOs focuses on these issues with the aim of generating an "above peer group" evaluation by the investment banks during the beauty contest, based on an innovative equity story.
Thus, we do not see the IPO itself as a major goal. Rather, we focus on the successful realization of the associated financial goals and the opportunities to develop future growth potential through investments made with the funds resulting from the IPO.
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Pay TV: New business for largest Media IPO
Skillnet long-term Client Premiere AG’s IPO on March 9th, 2005 was a great success. The issue volume amounted to EUR 1.179 billion. The IPO of Premiere AG was, at the time, the largest IPO and new issue by a German media company. Based on the issue price of EUR 28, this results in a market capitalization of EUR 2.3 billion. Skillnet has collaborated with Premiere on more than 25 projects since 1997. In preparation of the IPO several new business models were developed.
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SW Vendor: Equity Story for highest rated IPO
Even though the IPO markets were kind of mad in 1999 and 2000, we succeded in writing a unique equity story for an E-Commerce by realizing a sales multiple of 300! Skillnet supported the IPO candidate in the development of the equity story, its strategic advancement and the positioning in the competitive landscape, and compiled an informative fact book, which lead to the outstanding company evaluation. The company was first listed on March 21st, 2000.
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Consumer Electronics: Defining a new strategic business area Pre IPO
Skillnet supported a traditional European manufacturer of TV sets in the design of a home multimedia strategy as the basis for the company´s future strategic positioning. The redirection of business presented the fundament for a future oriented equity story and the successful IPO on July, 8th, 1999.
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Free TV: Pre IPO Repositioning
During the pre IPO phasis Skillnet supported a international free TV player in the strategic repositioning as a premium TV-brand and full service provider in the TV-market. A main challenge was the fulfilment of the conditions of the regional regulatory autorithies for TV and broadcasting. With its IPO on July 7th, 1997, the first German TV company went public.